MOTHERSON SUMI 2017-18 Annual Report Analysis

Sat, 31 Mar

MOTHERSON SUMI has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

MOTHERSON SUMI Income Statement Analysis

• Operating income during the year rose 34.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.8% in FY18 as against 9.8% in FY17.
• Depreciation charges increased by 48.7% and finance costs increased by 9.6% YoY, respectively.
• Other income declined by 35.6% YoY.
• Net profit for the year grew by 6.7% YoY.
• Net profit margins during the year declined from 4.8% in FY17 to 3.8% in FY18.

MOTHERSON SUMI Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	415,940	560,653	34.8%
Other income	Rs m	2,642	1,701	-35.6%
Total Revenues	Rs m	418,582	562,354	34.3%
Gross profit	Rs m	40,694	49,449	21.5%
Depreciation	Rs m	10,591	15,752	48.7%
Interest	Rs m	3,749	4,108	9.6%
Profit before tax	Rs m	28,996	31,290	7.9%
Tax	Rs m	9,103	10,072	10.6%
Profit after tax	Rs m	19,893	21,218	6.7%
Gross profit margin	%	9.8	8.8
Effective tax rate	%	31.4	32.2
Net profit margin	%	4.8	3.8

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MOTHERSON SUMI Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 153 billion as compared to Rs 114 billion in FY17, thereby witnessing an increase of 34.7%.
• Long-term debt down at Rs 76 billion as compared to Rs 94 billion during FY17, a fall of 19.8%.
• Current assets rose 7% and stood at Rs 171 billion, while fixed assets rose 23% and stood at Rs 194 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 369 billion as against Rs 319 billion during FY17, thereby witnessing a growth of 16%.

MOTHERSON SUMI Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	82,727	98,841	19.5
Current Liabilities	Rs m	113,827	153,342	34.7
Long-term Debt	Rs m	94,440	75,701	-19.8
Total Liabilities	Rs m	318,673	368,711	15.7
Current assets	Rs m	160,480	171,001	6.6
Fixed Assets	Rs m	158,193	194,104	22.7
Total Assets	Rs m	318,673	368,711	15.7

MOTHERSON SUMI Cash Flow Statement Analysis

• MOTHERSON SUMI's cash flow from operating activities (CFO) during FY18 stood at Rs 33 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -32 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -22 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -22 billion from the Rs 32 billion net cash flows seen during FY17.

MOTHERSON SUMI Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	37,997	32,640	-14.1%
Cash Flow from Investing Activities	Rs m	-67,261	-31,941	-
Cash Flow from Financing Activities	Rs m	55,176	-22,214	-
Net Cash Flow	Rs m	31,720	-21,515	-

Current Valuations for MOTHERSON SUMI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.1, an decline from the EPS of Rs 14.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 311.8, stands at 64.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.2 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 22.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	296.4	266.3
TTM Earnings per share	Rs	14.2	10.1
Diluted earnings per share	Rs	4.4	4.7
Price to Cash Flow	x	55.2	22.6
TTM P/E ratio	x	79.1	64.4
Price / Book Value ratio	x	5.3	8.5
Market Cap	Rs m	440,076	835,642
Dividends per share (Unadj.)	Rs	2.0	2.3

Ratio Analysis for MOTHERSON SUMI

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY18, from 1.4x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 8.6x during FY18, from 8.7x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 21.5% during FY18, from 24.0% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 20.3% during FY18, from 18.5% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 6.9% during FY18, from 7.4% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	1.4	1.1
Debtors’ Days	Days	41	37
Interest coverage	x	8.7	8.6
Debt to equity ratio	x	1.1	0.8
Return on assets	%	7.4	6.9
Return on equity	%	24.0	21.5
Return on capital employed	%	18.5	20.3

To see how MOTHERSON SUMI has performed over the last 5 years, please visit here.

MOTHERSON SUMI Share Price Performance

Over the last one year, MOTHERSON SUMI share price has moved down from Rs 372.8 to Rs 311.8, registering a loss of Rs 61.1 or around 16.4%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for MOTHERSON SUMI and quarterly results for MOTHERSON SUMI)

Read: Latest Annual Report Analysis of SAMVARDHANA MOTHERSON